Dvidind Policy

MHR shall, in principle, make dividends in accordance with the following policies.

The Method of Calculating Total Amount of Dividend to Unitholders

（1）

From the total amount to be distributed to unitholders, the amount of profit as stipulated in Article 136 of the Investment Trusts Act (the “Distributable Amount”) shall be the profit calculated in accordance with generally accepted corporate accounting practices in Japan (the amount calculated by deducting the total amount of unitholders’ capital, the capital surplus and valuation and translation adjustments from the amount of net assets (calculated by deducting the total amount of liabilities from the total amount of assets) on the Investment Corporation’s balance sheet as of the Fiscal Period Closing Date).

（2）

In principle, the amount of dividend shall be the amount determined by MHR that exceeds the amount equivalent to 90% of the amount of its profit available for dividend as set forth in Article 67-15(1) of the Act on Special Measures Concerning Taxation (the “Special Provisions for Taxation on Investment Corporations”). MHR may accumulate a long-term repair reserve, payment reserve, dividend reserve and any other similar reserves and allowances that are deemed necessary to maintain and improve the value of the Operating Assets from the Distributable Amount.

Dividends of Cash in Excess of Profit

If MHR considers it appropriate, it may make a dividend of the amount determined by MHR to the extent of the amount set forth in the rules of the Investment Trusts Association, Japan (“Toshin kyokai”) as dividends in excess of profit; provided, however, that, in such case, if the amount of dividends does not satisfy the requirements set forth in the Special Provisions for Taxation on Investment Corporations, it may make a dividend of the amount determined by MHR for the purpose of satisfying such requirements.

Method of Distribution

Distributions pursuant to this Article shall be made in cash and paid, in principle, within three months of the Fiscal Period Closing Date to unitholders and registered pledgees of investment units who are recorded or registered in the final register of unitholders as of the Fiscal Period Closing Date, in accordance with the number of investment units held or the investment units subject to the registered pledge.

Expiration of the Rights to Demand Dividends

In case where the dividends pursuant to this article are unclaimed for a period of three full years after the date of commencement of such payment, MHR shall be discharged from its payment obligation thereof. No interest shall accumulate on any unpaid dividends.

Rules of the Investment Trusts Association, Japan

In addition to Items above, MHR shall comply with the rules, etc. set forth by the Investment Trusts Association, Japan for dividends.